Stellantis and NioCorp Developments have signed a Rare Earth Offtake Term Sheet with an objective to enter into a definitive rare earth supply agreement to support Stellantis’ commitment to build supply chains and reach carbon net zero by 2038 and to help accelerate NioCorp’s path to commercial production of magnetic rare earth oxides in the United States.
The term sheet envisions a definitive agreement for a 10-year offtake contract for specific amounts of neodymium-praseodymium oxide, dysprosium oxide, and terbium oxide that NioCorp aims to produce at its Elk Creek Critical Minerals Project (Elk Creek Project) in southeast Nebraska, subject to the receipt of adequate project financing. The final volumes would be set in a definitive agreement.
Maxime Picat, Chief Purchasing and Supply Chain Officer, Stellantis said, “Stellantis intends to lead the industry with the commitment to be carbon net zero by 2038 – a goal that requires innovation and a complete redefinition of our sourcing strategies. By working with partners like NioCorp, we are taking important steps, with the aim of decarbonising mobility and ensuring strategic supplies of raw materials necessary for the success of the company’s global electrification plans highlighted in our Dare Forward 2030 strategy.”
Mark Smith, Executive Chairman and CEO, NioCorp said, “We are very pleased to announce that NioCorp and Stellantis have agreed to collaboratively develop Stellantis’ magnetic rare earth supply chain, including helping to identify a sintered rare earth permanent magnet manufacturer that provides additional geographic optionality to Stellantis, in support of their ambitious commitment to reach carbon net zero by 2038. We believe that NioCorp’s position as a potential U.S. supplier of multiple critical minerals needed for vehicle electrification offers Stellantis important optionality to secure supply chains and support its growth targets.”
The European carmaker says as no economic analysis has been completed on the rare earth mineral resource comprising the Elk Creek Project, further studies are required before determining whether extraction of rare earth elements can be reasonably justified and is economically viable after taking account of all relevant factors.
